Jio Platforms Gets SEBI Approval For ₹37,700 Crore IPO
Add Preferred News Source
Jio Platforms has received SEBI approval for its proposed ₹37,700 crore IPO, comprising 27 crore fresh issue, with ₹27,500 crore of proceeds earmarked for repaying Reliance Jio Infocomm borrowings.
Reliance Industries-backed Jio Platforms has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), taking the telecom and digital services company closer to a public listing. The issue is expected to raise around ₹37,700 crore and could value Jio Platforms at nearly ₹9.5 lakh crore.
Jio Platforms had filed its draft red herring prospectus (DRHP) with SEBI on 19 June. Reliance Industries Chairman Mukesh Ambani also described the proposed Jio listing as an important value creation milestone for the group during the company's 49th Annual General Meeting on Friday.
What Does The Jio Platforms IPO Include?
The proposed Jio Platforms IPO will consist entirely of a fresh issue of up to 27 crore equity shares, with no offer-for-sale component. The final issue price will be determined through the book-building process.
Up to 50% of the issue is proposed to be reserved for qualified institutional buyers (QIBs), while at least 35% will be allocated to retail individual investors. The company has not yet disclosed the portion that will be reserved for eligible Reliance Industries shareholders and employees.
At an expected issue size of around ₹37,700 crore, the offering could surpass Hyundai Motor India's IPO and rank as the largest public issue in India if completed at the proposed size.
How Will Jio Platforms Use The IPO Proceeds?
Jio Platforms plans to use ₹27,500 crore of the IPO proceeds to prepay certain borrowings of its subsidiary, Reliance Jio Infocomm Ltd (RJIL). This accounts for the bulk of the funds expected to be raised through the issue.
The remaining proceeds will be used for general corporate purposes.
Who Owns Jio Platforms?
Reliance Industries is the largest shareholder in Jio Platforms, holding a 66.43% stake. Meta, through its indirectly held subsidiary Jaadhu Holdings, holds nearly 10%, while Google International LLC owns an 8% stake.
Other shareholders include Saudi Arabia's Public Investment Fund, KKR subsidiary Omicron Asia Holdings II, Vista Equity Partners Management, SLP Redwood Holdings, Mubadala Investment Company, General Atlantic Singapore and Platinum Jasmine A 2018 Trust. Each of these investors holds a stake in the 1-2% range.
The SEBI approval allows Jio Platforms to proceed with its IPO plans, although the exact final issue size, pricing and other details will be determined closer to the offering. Jio Platforms will appoint KFin Technologies as the registrar, and the issue is likely to have a large group of book-running lead managers.
These include Kotak Mahindra Capital Company, Morgan Stanley India, BofA Securities, Axis Capital, BNP Paribas, Citigroup, Goldman Sachs, HDFC Bank, HSBC Securities, ICICI Securities, IIFL Capital Services, Jefferies, JM Financial, J.P. Morgan, SBI Capital Markets, UBS Securities and 360 ONE WAM.
Also Read - Tata Group, SP Group In Talks On Share Swap To Unlock Tata Sons Stake
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
